Who can use Adjudication

Any party to a construction contract (entered into after April 2003) has a right to refer a dispute or difference that has arisen under the construction contract to adjudication.  The dispute can be referred to Adjudication without the consent of the other party, and there is also no need for parties to agree as to a specific Adjudicator.

Adjudication can be used even if the dispute is the subject of other proceedings between the same parties such as an arbitration.

A dispute may be referred to adjudication even if it is the subject of another dispute resolution procedure (for example: a court  proceeding, arbitration or mediation). However, the Act does not allow the parties to use adjudication where they have already agreed to refer a dispute to arbitration and the arbitration is an "international arbitration" within the meaning of the Arbitraiton Act 1996.

Examples of disputes commonly referred to adjudication include:

• A building owner disagreeing with a builder about the amount of money to be paid for work done
• A building owner disagreeing with a builder as to whether work done is an extra to the contract
• A building owner who has a disagreement with a builder about the quality of materials supplied or work done
• A builder trying to obtain payment from a homeowner or developer for building work done
• A builder who does not agree with an amount claimed for work by a subcontractor
• A subcontractor who cannot get payment from a builder for any reason
• A supplier of customised building components who cannot get payment for any reason
• A disagreement  between parties to a construction contract as to their rights and obligations under that contract.